Share purchase agreements: Locked box or completion accounts

Choice down to the parties' negotiation positions

clock • 5 min read

Helen Curtis explores locked box versus completion accounts in share purchase agreements which she says are commonly used but not well understood...

Share purchase agreements are a fairly common tool used in business to transfer shares. However, while widely used, they are not always well understood. One aspect of a share purchase agreement is the handling of the accounts on the day of purchase. The date on which ownership of a company moves from the seller to the buyer is described as "completion" in a share purchase agreement. From completion, the buyer takes all risks and benefits of the company. For this reason, it is essential that the buyer knows the full extent of the financial position of the company on completion. M...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your Business

Tales of the unexpected: The importance of shareholder agreements

Tales of the unexpected: The importance of shareholder agreements

In business prevention is better than cure

Roderic Rennison
clock 15 July 2024 • 5 min read
All the advice firm acquisitions that have taken place in 2024

All the advice firm acquisitions that have taken place in 2024

Keeping track of the ongoing consolidation of the advice industry

Professional Adviser
clock 11 July 2024 • 1 min read
PA360 North: Leading adviser event returns to Warrington in October

PA360 North: Leading adviser event returns to Warrington in October

Join us at The Park Royal Hotel & Spa on 1 October

Professional Adviser
clock 05 July 2024 • 1 min read